Please answer asap. answer both 1 and 2 .
The Appomatix Company sells fertilizer and pesticides to wholesalers. The company’s fiscal year-end is December 31. During 2018, the following transactions related to receivables occurred:
March 31 Sold merchandise to the Misthos Co. and accepted a noninterest-bearing note with a discount rate of 10%. The $12,000 payment is due on March 31, 2019.
May 30 Transferred receivables of $100,000 to a factor without recourse. The factor charged Appomatix a 2% finance charge on the receivables transferred. The sale criteria are met.
July 31 Sold merchandise to Favre Corporation for $15,000 and accepted an 8%, 6-month note. 8% is an appropriate rate for this type of note.
Sept. 30 Sold the Favre Corporation note to a local bank. The bank’s discount rate is 12%. The note was sold without recourse.
Required:
1. Prepare the necessary journal entries for Appomatix for each of the above dates. For transactions involving the sale of merchandise, ignore the entry for the cost of goods sold (Round all calculations to the nearest dollar).
2. Prepare any necessary adjusting entries at December 31, 2018. Adjusting entries are only recorded at year-end (Round all calculations to the nearest dollar)